Key Terms & Concepts — UPSC Mains
Compensatory Afforestation
"Mandatory replacement of forest land diverted for non-forest purposes by afforesting equivalent non-forest land"
Compensatory Afforestation is the legal requirement that when forest land is diverted for development projects (roads, mining, dams, etc.) under the Forest Conservation Act, 1980, an equivalent area of non-forest land must be afforested to compensate for the ecological loss. The funds for this are managed under the Compensatory Afforestation Fund Management and Planning Authority (CAMPA) established by the Compensatory Afforestation Fund Act, 2016.
Frequently tested in Prelims and critical for GS3 Environment answers. Understanding CAMPA is essential for questions on forest governance, environmental clearances, and the tension between development and conservation.
- 1 Legal basis: Forest Conservation Act, 1980 (amended 2023)
- 2 CAMPA Act, 2016 established the National and State CAMPA funds
- 3 Van Sanrakshan Evam Samvardhan Rules, 2023 updated the framework
- 4 Diversion of forest land requires Central Government approval
- 5 Compensation includes: afforestation on equivalent non-forest land + Net Present Value (NPV) payment
- 6 NPV ranges from Rs 5.8 lakh to Rs 10.43 lakh per hectare depending on forest density
- 7 Total CAMPA funds accumulated: Rs 54,000+ crore (as of 2025)
- 8 80% of funds go to State CAMPA, 10% to National CAMPA, 10% to ad hoc CAMPA
Assam created Burhachapori No. 5 Reserved Forest (224.325 hectares) as compensatory afforestation for forest land diverted to NHIDCL, NHAI, ONGC, and Oil India projects.